Reducing GST to 5% on Helmets Crucial for Safety; Targeting 10 Million Units This Fiscal Year
By: Admin
May 27, 2024
Categories: GST Recent News
4 Min Read
Home-grown helmet manufacturer Steelbird Hi-Tech has announced ambitious plans for the fiscal year 2024-25, aiming to market 10 million helmets. This growth strategy includes expanding manufacturing capacity and potentially establishing a new facility in southern India with a projected investment of Rs 100 crore. Additionally, the company is enhancing its existing Baddi plant in Himachal Pradesh with new machinery and production lines, moving towards greater automation with an automated paint shop and robotic visor coating system. The expansion, costing Rs 105 crore, involves acquiring more land in Baddi and is expected to increase production capacity to 50,000 units per day.
We spoke with the Managing Director of Steelbird Hi-Tech India for further insights into the company’s strategy and challenges. Emphasizing the company’s commitment to quality, he highlighted Steelbird’s 60 years of experience, stating, “We never compromise on quality. All the raw materials we use are of virgin grades. We produce EPS ourselves, ensuring the best quality as EPS is a crucial component of helmets.” He also noted that the company’s high production volume, currently at 30,000 helmets a day, allows for cost-effectiveness through better supplier deals, resulting in savings passed on to customers.
Addressing the issue of fake helmets in the market, he stressed that government intervention is necessary. “We ensure that we produce the best quality helmets. Many NGOs and government bodies are working to combat fake helmets, and we support these initiatives,” he said.
Steelbird has also entered the premium helmet market with its Ignite brand, featuring helmets certified by ISI, DOT, and ECE. The company plans to launch a carbon fibre helmet priced at Rs 15,000 within the next four months. However, practical challenges have so far prevented the integration of smart helmet features like accident alert systems and anti-theft mechanisms.
The company is also targeting the South Asian export market and plans to showcase 36 new models at the EICMA exhibition in November. Additionally, the Managing Director is advocating for a reduction in GST on helmets from 18% to 5% or at least 12%. “A lower GST rate would make good helmets more affordable and save millions of lives by promoting safety. It would also reduce government expenditure on road accident-related costs,” he argued.
Despite its strong market position, Steelbird faces challenges such as high GST rates and the prevalence of fake helmets. “Our brand has become number one, and people are after Steelbird helmets. We don’t face major challenges from these issues, but they remain significant for the industry,” he noted.
Steelbird’s expansion strategy also includes significantly broadening its product range. The company plans to introduce 70 new helmet models featuring advanced technologies like Bluetooth integration and improved airflow. In 2023, Steelbird achieved sales of over 8 million units globally, contributing to a revenue of Rs 711 crore. For the current fiscal year, the company aims to manufacture 10 million helmets and projects its revenue to surpass Rs 900 crore.